1982 (2) TMI 161

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...., against the order of the Commissioner (Appeals), confirming a gift-tax assessment for the assessment year 1968-69. 2. Sundaram Motors (P.) Ltd., since succeeded to by T.V. Sundaram Iyengar & Sons Ltd. had made donations of Rs. 50,000, Rs. 50,000 and Rs. 25,000 to Andhra Pradesh Congress Committee, Mysore State Congress Committee and All India Congress Committee, respectively, during the accou....

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....e Gift-tax Act' wherein it was stated that a contribution to the funds of a political party does not satisfy the condition laid down in section 5(1)(xiv) of the Gift-tax Act. It has since been brought to the notice of the Board that certain companies, public as well as private, have amended their memorandum and articles of association so as to empower them to subscribe or contribute money to publi....

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....epartmental representative, has since been withdrawn by Instruction No. 923 in P. No. 329/10/71-GT, dated 9-6-1972, though the Instruction withdrawing the circular does not appear to have been published. At any rate, the circular dated 5-1-1960 was in force during the accounting year under consideration. The requirement of the circular is that the donations should have been made under the authorit....

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....s and in such cases, as the company may think conducive to any of its objects or otherwise expedient." Hence the power "to make donations to such persons and in such cases, as the company may think conducive to any of its objects or otherwise expedient" is large enough to empower these donations to political parties. It is also not the case of the authorities that there is no such power with th....